Good day folks,
One of my favourite pattern is showing up on the one and four hour chart. I’m a very short-term trader who often scalp a couple bucks intra-day. However, I will be opening a position in this longer timeframe trade, because I just cannot pass on it.
This is a bearish pattern. I don’t know if there is a name for it, if there is one please educate me. This is basically a double-bottom with a double-top between them. What I observed is that it is often followed by a strong reversal following the double-bottom, then make a double-top again, and then fall again. I do not know how far the reversal can go; sometimes it is stronger, sometimes less. My target is about 265, which would bring us to January high and make at the same time a double-top (it would make sense). It is also not sure that the selloff would be has bad as I show it on the chart, here again it is pure speculation and charting is not an exact science.
Following is my trading plan:
1. Open CALL DIA 2018APR20 250.00 (if I’m right, we have minimum a 10 bagger here);
2. Close Call position;
3. Open PUT DIA 2018JUN15 250.00;
4. Close Put position if price don’t break 255. If it breaks it, let it go! (Final target: 200)
As you can see, it is a very speculative trade, but I have been successful trading this pattern in the 5 minutes chart, so I’m giving it a try in a longer timeframe.
Thank you, all comments are welcome,
One of my favourite pattern is showing up on the one and four hour chart. I’m a very short-term trader who often scalp a couple bucks intra-day. However, I will be opening a position in this longer timeframe trade, because I just cannot pass on it.
This is a bearish pattern. I don’t know if there is a name for it, if there is one please educate me. This is basically a double-bottom with a double-top between them. What I observed is that it is often followed by a strong reversal following the double-bottom, then make a double-top again, and then fall again. I do not know how far the reversal can go; sometimes it is stronger, sometimes less. My target is about 265, which would bring us to January high and make at the same time a double-top (it would make sense). It is also not sure that the selloff would be has bad as I show it on the chart, here again it is pure speculation and charting is not an exact science.
Following is my trading plan:
1. Open CALL DIA 2018APR20 250.00 (if I’m right, we have minimum a 10 bagger here);
2. Close Call position;
3. Open PUT DIA 2018JUN15 250.00;
4. Close Put position if price don’t break 255. If it breaks it, let it go! (Final target: 200)
As you can see, it is a very speculative trade, but I have been successful trading this pattern in the 5 minutes chart, so I’m giving it a try in a longer timeframe.
Thank you, all comments are welcome,
Comment:
My trading plan for this week assumming that we are going up until we reach the top trendline of the triangle (in green).
Basically, i have a long position that i will hold and I will be shorting at all the tops marked by a water drop.
Basically, i have a long position that i will hold and I will be shorting at all the tops marked by a water drop.
Comment:
We are getting close from the top trend line of this descending triangle (green). You remember the last time? It dropped. I will be buying a couple puts if a candle gets close to it. But overall everything looks good: I think that we are going to break through this triangle, however I expect some resistance, and a trap (bear or bull, to early to tell, but I would bet on a bear trap).
Cheers,
Cheers,
Comment:
We are approaching the trap at 242. This will be the moment of truth: Are we going long or are we going short?
I will be long if 242 holds. If not then I will be short. Expect a confusing setup. I think that it is better to be patient in this trap.
I will be long if 242 holds. If not then I will be short. Expect a confusing setup. I think that it is better to be patient in this trap.
Comment:
Looks like the DJI is stabilizing; a good time to iniate a long position. I will adding if it breaks through 242.
Comment:
Inversed H&S in formation; I will be adding calls on the right shoulder at around 241
Comment:
definitively not good
Comment:
Pink scenario it is. Sold my puts, waiting for a retracement for selling my remaining calls and open puts again.
Trade closed: target reached
I added a second scenario (in pink) and also revised my targets lower (I must admit that it was a bit optimistic), but the idea remains the same; some upside following by a serious selloff. As of now, the worst I can see for DJI is 22900, so I will open a small long position and average down if we reach that. I'm still holding on my puts until we can see some signs of a rally beginning.
Thanks,